Arsenal will send Gedion Zelalem on loan to Dutch club VVV Venlo and are set to reward the youngster with a contract extension.
Borussia Dortmund were said to be interested in the US youth player, who was born in Germany, but the central midfielder is understood to be heading on loan to the Dutch second division side.
The pending move was earlier reported by Dutch outlet Telesport, which claimed a deal could be done by Tuesday.
De Telegraaf meanwhile reports that Wenger himself has rubber-stamped a contract extension for the 19-year-old rather than lose him for nothing in the summer.
He has twice appeared for Arsenal’s first team this season as a substitute in League Cup games against Notingham Forest and Reading.
Zelalem and representatives from Arsenal watched VVV Venlo at the weekend and reported that they were happy with the switch.
Zelalem joined Arsenal in 2013 after being spotted playing in America and he made his first-team debut in January 2014 at the age of 16 in an FA Cup tie against Coventry before going on to make his Champions League debut later that year.
He spent last term at Rangers, helping them win promotion back to the Scottish Premiership.